California ISO Opens Market to New Demand Response Product

The California Independent System Operator Corporation (ISO) further opened California's power market to electricity customers, enabling them to compete alongside electricity suppliers.

Registrations are being accepted by the ISO for Proxy Demand Resources (PDR). Demand response providers can now bid electricity-reduction capabilities into the ISO day-ahead and real-time markets as well as provide capacity in the ISO ancillary services (reserves) market.

If dispatched, the provider would reduce electricity usage and receive payment similar to a power plant. If dispatched, customers would reduce demand on the system by a specified number of megawatts.

PDR is a flexible resource that enables all load types to participate in the ISO market, from aggregated residential loads to large industrial loads. The new PDR product will provide more choices and options for energy consumers to reduce costs and will help green the grid by assisting with the integration of renewable power.